Carindale ahead

The
Carindale Property Trust
has recorded a net profit of $12.7 million for the first half of the 2011 fiscal year.

The single-asset trust is half owned by Westfield Group and owns – in partnership with the Lend Lease-managed Australian Prime Property Trust Retail – the Westfield Carindale shopping centre in Brisbane.

The centre is undergoing a major $300 million redevelopment, which will see an additional 22,000 square metres of floor space.

Since the announcement of the development project, Carindale has been trading at a steep discount to net tangible asset backing – which sits at $5.59 per security. Carindale closed at $4.20 yesterday, down 6¢.

JPMorgan’s Rob Stanton questioned whether Westfield would buy out the remaining half-interest in the trust. While managing director Steven Lowy could not be drawn on Westfield’s intentions, he said the group was focused on managing the shopping centre. “Our responsibility here is to manage the assets as best as we can," he said.

Net property income increased 13.5 per cent on the previous year to $14.2 million. The centre had total retail sales for calendar 2010 of $695.7 million.